US President Donald Trump, after blacklisting Huawei as a threat to the US military, said that the tech firm could be a part of any trade deal with Beijing. “If we made a deal, I could imagine Huawei being possibly included in some form or some part of it,” he said.
Over the past weeks, the internet has been agog with the news about the US-China trade war. The US set the ball rolling with hikes in tariffs after a failed business deal. There was a hike from 10% to 25% on $200bn worth of Chinese imports, followed by a blacklist which bans the tech firm from acquiring parts from any American firm without the government’s approval.
President Trump argues that employing the Chinese-owned technology poses a security risk as China could be spying on their activities via technology. Shortly after the US government pronounced the order, Google, Panasonic and other companies have announced their disengagement with the tech firm.
China accused the US of bullying Huawei and fired back by announcing its plans to increase levies on $60bn of US imports which would take effect from June 1.
Supported by the US, other European countries believe that Huawei equipment could be used for surveillance, an allegation the company has persistently denied. Huawei defends its position by stating that it works as an independent establishment and has no ties with Beijing.
“Huawei is something that is very dangerous. You look at what they’ve done from a security standpoint. Very dangerous,” the US president told reporters at the White House.
The restriction on Huawei already has ripple effects on the tech industry, with other companies dissociating with the firm. Panasonic said it was scrutinizing its relationship with the tech firm, mobile operators announced their intention to suspend orders for Huawei smartphones, following the ban by the US government.
Other accusations by the US include intellectual theft, a crime which China has vehemently denied. The country also wants China to adjust its economic policies because they “unfairly favour” domestic companies through subsidies.
So far, efforts to resolve the trade dispute between both parties have been futile. Since the last talk on May 10 that ended without a deal, there have been no formal discussions.